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Avigilon Corporation Announces Third Quarter 2011 Results

VANCOUVER, Nov. 14, 2011 /CNW/ - Avigilon Corporation (TSX: AVO), a
leader in high-definition (HD) surveillance systems, today announced
its financial results for the three and nine months ended September 30,
2011. All figures are stated in Canadian dollars unless otherwise
noted.

Third Quarter 2011 Highlights

Revenue was $15.1 million, an increase of 82% over Q3 2010 revenue of
$8.3 million.

Gross margin was 45.7%, compared to 45.5% in Q3 2010.

Adjusted EBITDA was $1.5 million, an increase of 10% from $1.4 million
in Q3 2010. (See "Non-IFRS Measures" below.)

Net income was $1.0 million, up 34.9% from $0.7 million in Q3 2010.

Subsequent to the end of the quarter Avigilon completed a $25 million
financing transaction, raising gross proceeds of $20 million in an
Initial Public Offering and proceeds of $5 million in a Secondary
Offering, and listed its shares on the Toronto Stock Exchange.

Year-to-Date 2011 Highlights

Revenue was $41.2 million in the first nine months of 2011, an increase
of 86% over $22.1 million in the comparable period of 2010.

Gross margin was 43.8%, compared to 44.9% the prior year.

Adjusted EBITDA was $4.3 million, up 77% from $2.4 million a year
earlier.

Net income was $2.2 million, an increase of 111% from $1.0 million in
the 2010 period.

"We are very pleased to report a very strong third quarter, in which we
achieved 82% revenue growth while remaining solidly profitable," said
Alexander Fernandes, President and Chief Executive Officer, Avigilon.
"We believe that there are significant opportunities available to us in
the global video surveillance market. Our recent IPO provides us with
the resources to expand our sales and marketing efforts and accelerate
our product roadmap so that we are well positioned to capitalize on
these opportunities."

Financial Review

Avigilon's revenue was $15.1 million for the three months ended
September 30, 2011, an increase of $6.8 million or 82% compared to $8.3
million for the third quarter of 2010. The increase in revenue was due
to higher product sales volumes worldwide, as a result of new product
offerings, penetration into new markets, and greater customer
acceptance in existing markets.

Gross margins were $6.9 million in the third quarter, an increase of
$3.1 million or 83% from $3.8 million a year earlier. As a percentage
of revenue, gross margins were 45.7% in Q3 2011 compared to 45.5% in Q3
2010.

Selling and marketing expenses were $3.2 million in the third quarter, a
$1.9 million increase from $1.4 million the previous year. The
increase was primarily due to increased sales volumes, additional
personnel and their related expenses.

Research and development expenses were $0.8 million in the third
quarter, a $0.3 million or 70% increase from $0.5 million in the prior
year's third quarter.

General and administrative expenses were $1.5 million in Q3 2011,
compared to $0.7 million in Q3 2010. The increase was primarily due to
additional personnel and their related expenses to support Avigilon's
growth.

Adjusted EBITDA was $1.5 million in the third quarter, an increase of
$0.1 million or 10% compared to $1.4 million in the prior year's third
quarter.

Net income was $1.0 million in the third quarter of 2011, an increase of
$0.3 million or 34.9% compared to a net income of $0.7 million in Q3
2010. Earnings per share were $0.06 (basic) or $0.04 (diluted) in Q3
2011, compared to $0.04 (basic) or $0.03 (diluted) a year earlier.

Avigilon's weighted average share count in the third quarter of 2011 was
17,248,202 (basic), or 30,165,566 (diluted). As of November 14, 2011,
after giving effect to the issuance of 4,444,446 shares in the
Company's IPO and the associated conversion of 9,148,639 preferred
shares into common shares, the share count stood at 30,841,287 (basic)
or 34,610,012 (diluted).

Conference Call
Avigilon has scheduled a conference call to discuss these results on
Monday, November 14, 2011, beginning at 4:30 p.m. EST (1:30 p.m. PST).
To access the call, dial 647- 427-7450 or 1-888-231-8191, or view the
webcast at http://ir.avigilon.com. A replay will be available for one year on the Company's website, and
for one week by dialing 416-849-0833 or 1-855-859-2056, reference
number 26887022.

Non-IFRS Measures
The term "adjusted EBITDA" refers to earnings before deducting interest,
taxes, depreciation, amortization, foreign exchange gain or loss, and
stock-based compensation. Management believes that adjusted EBITDA is
a useful measure as it provides an indication of the operational
results of the business prior to taking into consideration how those
activities are financed and taxed and also prior to taking into
consideration asset amortization. Adjusted EBITDA does not have a
standardized meaning prescribed by International Financial Reporting
Standards (IFRS) and is not necessarily comparable to similar measures
provided by other companies. Accordingly, investors are cautioned that
adjusted EBITDA should not be construed as an alternative to operating
income or net income determined in accordance with IFRS as an indicator
of the Company's financial performance or as a measure of its liquidity
and cash flows.

About Avigilon

Avigilon is a leader in the design, manufacturing and marketing of high
definition, network-based video surveillance systems and equipment for
the global security market. The Avigilon surveillance system has been
designed to provide high quality video capture, transmission, recording
and playback. The components of the Avigilon system include cameras,
recording hardware and software which may be sold separately or in
combination to provide customers with a customizable end-to-end video
surveillance solution.

Forward Looking Statements

Certain statements contained in this news release, including all
statements that are not historical facts, contain forward-looking
statements and forward-looking information within the meaning of
applicable securities laws. Often, but not always, forward-looking
statements or information can be identified by the use of words such as
"plans", "expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate" or "believes" or variations of such words and
phrases or statements that certain actions, events or results "may",
"could", "would", "might" or "will" be taken, occur or be achieved.
With respect to forward-looking statements and information contained
herein, we have made numerous assumptions. Although our management
believes that the assumptions made and the expectations represented by
such statement or information are reasonable, there can be no assurance
that any forward-looking statement or information referenced herein
will prove to be accurate. Forward-looking statements and information
by their nature are based on assumptions and involve known and unknown
risks, uncertainties and other factors which may cause our actual
results, performance or achievements, or industry results, to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking statement or
information. Such risks, uncertainties and other factors include, among
other things those risks identified in Avigilon's prospectus filed on
SEDAR at www.sedar.com.

Although we have attempted to identify factors that would cause actual
actions, events or results to differ materially from those disclosed in
the forward-looking statements or information, there may be other
factors that cause actions, events or results not to be as anticipated,
estimated or intended. Also, many of the factors are beyond the control
of Avigilon. Accordingly, readers should not place undue reliance on
forward-looking statements or information. Avigilon undertakes no
obligation to reissue or update any forward-looking statements or
information as a result of new information or events after the date
hereof except as may be required by law. All forward-looking statements
and information herein are qualified by this cautionary statement.

Avigilon Corporation

Condensed consolidated interim statements of comprehensive income

for the three and nine months ended September 30, 2011 and 2010

(Expressed in Canadian dollars, except number of shares and per share
amounts)